Letters to the Editor

Hospital’s bond numbers accurate

Editor: Before the Hospital Board’s successful vote to go forward with a $45 million bond proposal, which I generally support, I voiced a concern that the advertised annual property tax appeared to be too low to cover the debt service for the proposed bond amount. I was concerned that if number were too low, then taxes would have to be unexpectedly raised in the future. Board President Dick Kirk publicly invited me to sit down with CFO Jim McSweeney to go over the numbers to confirm their accuracy with me.
I admittedly entered this meeting with a healthy degree of skepticism. Mr. McSweeney’s detailed explanation included a review of historical district real estate values, property turnover, the property tax rolls and a novel bond structure. The CFO clearly established a rational basis for how the ever-increasing annual debt service would be paid. This is due to a large number of properties in the district, which are currently assessed at surprisingly low levels, turning over (selling in the future) and establishing much higher new assessed values. This will generate sufficient growth in future tax collections to cover the bond’s rising debt service. This was one of my two essential concerns.
Based on 25 years experience as a municipal bond professional I now know that we can afford the $45 million bond. Mr. McSweeney’s solid financial data, in addition to all other considerations, reinforces the Board’s rationale for the selection of the more flexible in-town option.
The final question is exactly what do we get for our money? I appreciate Board Member Arnie Riebli’s candor at the Oct. 10, 2007, meeting in saying $30 million will extend the existing hospital’s life until 2030. It would be helpful if the Board offered voters such a time-linked goal for insuring the existing facility’s viability until either the 2020 or 2030 deadlines. The ballot measure literature must clearly state how the $45 million will be allocated.
Dennis Hipps
Sonoma

Editor: The State of California runs the business of governing largely by mandates, directives, and rules set by commissions, department heads, and committees. Most of the commissions are staffed by ex-legislators who have been term limited out. As ex-members of the State legislature they know how to get money out of the pockets of the citizens. They are all highly paid.
As a result, inefficiency abounds. A previous City of Sonoma public works director told me that fully one third of his budget was spent on filling out reports, directives, and surveys from Sacramento. When I asked him how many of these were backed by law, he said very few. They were internal demands from various departments. When I suggested that he stop filing reports unless they were backed by law, he was aghast. As a tried and true bureaucrat he fully supported the concept of the greater the number of employees, the greater the pay of the head man.
The wonder to me is that the economy can support such massive unproductivity. We sink lower as taxes spiral upwards. The poor fellow at the bottom of the ladder can never get his foot on the first rung.
Our local hospital is a good case in point. Seismic upgrades are mandated but no money comes with the mandate. The mandate requires that the local authorities tax themselves to fulfill the mandate. Our local hospital board fell for this thinking hook, line and sinker. The U.C. hospital in San Francisco told the commission, when you send us the money we will do the upgrades – close the hospital if you dare. No legislature will commit suicide by closing any local hospital. The effective date of the mandate will continue to be pushed ahead.
Is there danger? Sure. But not as much as crossing the street or drowning in the bath tub. We can take our chances.
Let’s get on with upgrading the current hospital on the present site and the mandates be damned. When Sacramento sends us the money, we will build a new hospital. Until then we will use our current hospital that serves us very well every day of the year.
Bob Cannard
Sonoma